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Garmin's Marketing Strategy: Navigating Risks in the GPS Market

Garmin's marketing strategy emphasizes rapid product refreshes and feature updates to maintain relevance in an increasingly competitive GPS market. The company's extensive distribution network includes over 3,000 independent dealers and leading electronics retailers, yet faces challenges from declining average sale prices and competition from wireless carriers adopting GPS services. Despite a healthy financial status with low risk to solvency, Garmin must improve operational efficiency and expand its revenue streams to counteract slowed growth and maintain market share.

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Garmin's Marketing Strategy: Navigating Risks in the GPS Market

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Presentation Transcript

  1. Company Overview

  2. Marketing Strategy R&D focus ensures the latest features reach market quickly; frequent product refreshes. nüvifone to keep company relevant with GPS now pervasive on cell phones; significant execution risk in competitive industry. Adoption of GPS service by wireless carriers could cannibalize sales of Garmin's personal navigation devices. Garmin’s distribution network includes 3,000+ independent dealers and the largest electronics retailers. Garmin's consumer products are marketed through local distributors who resell to dealers. Garmin's distribution reach diminishes as retailers such as Circuit City close stores. Average sale prices for Garmin's navigation devices continue to fall as competition increases -- adversely affecting their market share. Garmin recently benefited from lower input costs affecting their ability to remain competitively priced. (Pricegrabber, 2008) Promotional focus is on increased consumer awareness of the Garmin name. Efforts include typical media placements (periodical ad space, billboard, radio) Media partnerships with OEM’s PRODUCT PRICE PROMOTION PLACE

  3. PEST Analysis POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

  4. SWOT Analysis

  5. Competitive Analysis Target Markets Porter’s 5 Forces

  6. Financial Analysis Summary • Healthy financially although less efficient over the last 2 years. • Current equity return and profit margin is above the S&P 500 average • Carries almost no risk to solvency and its ability to cover its liabilities as the • Has more than 4.5 times assets to liabilities. • Carries no debt. • Because Garmin’s growth trend has slowed significantly it will need to become more efficient and expand its revenue base either through a better use of cash or a reduction of inventory for a better return on capital.

  7. Critical Success Factors

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